Tightrope: Sometimes layoffs are unavoidable

Putting people out of work is a tough decision. But sometimes it's the only thing to do.(Photo: Rob Daly, Getty Images/OJO Images)

Story Highlights

Cutting employees is tough

But sometimes you've got to do it

Your customers need to be your top priority

Greetings, Gladys, Both my accountant and my bookkeeper have suggested that if I want to stay in business I must cut expenses. This would include cutting employees. It's tough for me to see how I will get a maximum amount of work done with a reduced staff. I'm in the heavy construction business. According to my financial advisers, payroll and medical benefits are driving me into a hole. My problem is that almost every employee has been here since I started the company more than 25 years ago. These workers have been loyal to both the company and me and I don't want to put them out of work. My wife has also said that with fewer employees it might force me to work longer hours and consequently cause both physical and emotional stress. -- M. L.

Putting people out of work is a tough decision to have to make. But sometimes it's the only thing to do. Your e-mail made me reflect on an article I read about 15 years ago when downsizing was often in the news. A CEO announced that his major company would be eliminating thousands of jobs in the months to come. The media took him to task on his decision and asked him how he could do such a thing. He responded by saying that times had changed and his company had to become more competitive and could no longer afford to support and care for all of the people the company employed.

The message that I got from his statement was that his company's focus had been directed toward supporting and taking care of employees. And his new business focus was to become more competitive. He never once mentioned how this move would impact his customers. Would it allow for better service? Would his decision save customers money?

My first thought is that you should ask yourself why are you in business and how will your new moves affect your clientele. Are you there to retain longtime, loyal employees or to bring better service to your clients? My hope is that you are making changes that will improve your ability to serve your clientele. And, in the process you can still be helpful to your employees.

It's not what you do; it's how you do it. You don't have to boot your longtime employees out into the cold. You can very helpful in assisting them in making the transition by hiring a company that provides employment counseling. Some of your staff might even be interested in owning their own business. You can be very helpful to those people as well by showing them how to get started.

Next, so that you don't suffer from burnout by overworking, take time to review and plan each move that you make toward your leaner, meaner company.

Contracting and outsourcing will often allow the work to get done better, faster and cheaper than when it was done in-house. Also, you can always call a temporary employment agency for those seasonal rush periods.

Sit down with your accountant and a good business consultant and lay out a plan that will work effectively for you and your business. And keep in mind that without clients/customers you have no business. So, make certain that any move that you make will bring added benefits to you ability to service your clients.